Renter’s Insurance Policies: What Does Renters Insurance Cover?

Do you have renters insurance? According to a survey conducted by Nationwide, 56 percent of people between the ages of 23-35 go without renters insurance while another 40 percent also believe it isn’t important or needed at all. Pair these numbers up with 72 percent of renters whose greatest fears involve theft and break-ins and you’ve got a puzzle on your hands. After all, if you could do something to protect your property, if you could safeguard your possessions for the monthly cost of a movie ticket and coffee, just why do so many renters pass up on getting a good renters insurance policy?

High Costs of Premium Policies  

For most people, it’s a false perception of cost. Most people think renters insurance can be frightfully expensive. If you think your wallet is going to take a hit in a big way because of renters insurance, then you’ll probably skip it over or put it off to a later date when you have the financial wherewithal to take care of it. But with an estimate of $184 a year or $20 per month, adding a renter’s insurance policy onto your stack of monthly bills isn’t going to put you in the red. Given the low cost of renters insurance, there’s really no reason to go without it.

Not Knowing How Much You Own

Another likely possibility is that you don’t think you own enough to be insured, much less protected. However, if you bother to take a tally of everything you own, you might be surprised at how much you actually have.

Lack of Insight into Property Damage Coverage

Do you think your landlord’s got you covered if your laptop is stolen or your antique furniture is ruined in a flood? Unless you’re personal friends with your landlord and they are well off, don’t hold your breath. Landlords typically don’t provide coverage for your personal belongings. So if you want to protect yourself and your possessions against theft or damage brought on by a fire, flood, storm, or some other disaster, you’ll need to know what’s covered and what’s not. Here’s a list of what you should look for in terms of renters insurance coverage.

1. Live in an area where theft is rampant? Then expect a higher premium. Though, the safer your neighborhood is, the lower your insurance premium will be.
2. Water Damage. Is your home located in a flood-prone area or at least one that often bears the brunt of storms and tidal waves? Then you’ll need to invest in water damage coverage as soon as possible. If anything happens, you’ll at least have the comfort and consolation of knowing you had your personal belongings insured. In case you find yourself struggling to cope with the aftermath of a tidal wave that destroyed your home and put your life at risk, you at least have one less thing to worry about if you’ve got water damage coverage.
3. In a lot of cities with high crime rates, property insurance is also high, like New York in the 1960s and 1970s, says Forbes. So you want to make sure your car or property are covered in case you wake up one morning and find your belongings defaced, vandalized or damaged in any way.
4. Fire remains a common cause of property damage. And with the holidays so close, you can expect to see plenty of strings of blinking lights in many homes. While these lights certainly add to the holiday cheer and help usher in the yuletide season, use of these festive, holiday lights could prove fatal, especially if it involves any faulty wiring. This could turn into a fire that could wipe out your entire home and all the material assets you have—the paintings, the art, the furniture and electronics, the car, the books, all of which you’ve worked hard to collect over the years. So do yourself a favor. Get fire coverage. In case of a fire breaking out, you’ll at least know that your property is covered.
5. Sometimes fires are quickly put out and you discover that while flames weren’t able to do a lot of damage, the lingering smoke had no problem seeping into your furniture, walls and basically took over every inch of your home. By getting smoke coverage, you have assistance to help you deal with that scenario if and when it happens.

These are some of the basic things renters insurance must include. For an easier time at it, you can always check out insurance comparison and shopping portals. For instance, CoverHound makes it easy to understand renters insurance quote comparison details, saving you time and money while you shop around for the best quote possible.